Products

EMARKETER delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.
PRO+
New data sets, deeper insights, and flexible data visualizations.
Learn More
Reports
In-depth analysis, benchmarks and shorter spotlights on digital trends.
Learn More
Forecasts
Interactive projections with 10k+ metrics on market trends, & consumer behavior.
Learn More
Charts
Proprietary data and over 3,000 third-party sources about the most important topics.
Learn More
Industry KPIs
Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce.
Learn More
Briefings
Client-only email newsletters with analysis and takeaways from the daily news.
Learn More
Analyst Access Program
Exclusive time with the thought leaders who craft our research.
Learn More

About EMARKETER

Our goal is to unlock digital opportunities for our clients with the world’s most trusted forecasts, analysis, and benchmarks. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive.
Our Story
Learn more about our mission and how EMARKETER came to be.
Learn More
Methodology
Rigorous proprietary data vetting strips biases and produces superior insights.
Learn More
Our People
Take a look into our corporate culture and view our open roles.
Join the Team
Contact Us
Speak to a member of our team to learn more about EMARKETER.
Contact Us
Newsroom
See our latest press releases, news articles or download our press kit.
Learn More
Advertising & Sponsorship Opportunities
Reach an engaged audience of decision-makers.
Learn More
Events
Browse our upcoming and past events, recent podcasts, and other featured resources.
Learn More
Podcasts
Tune in to EMARKETER's daily, weekly, and monthly podcasts.
Learn More

First Republic’s Q1 earnings show it’s still struggling while other regional banks are on the road to recovery

The news: Though most US regional banks’ deposits have stabilized after March’s banking crisis, First Republic Bank is grasping at straws to stay alive, per Bloomberg.

Worse than expected: Nearly all of First Republic’s Q1 results came in lower than analysts’ already pessimistic expectations. After a brief earnings conference, First Republic executives declined to take any questions.

  • Analysts estimated the bank would report roughly $137 billion in deposits, but the actual number came in much lower, at $104.5 billion. The bank said it experienced over $100 billion in withdrawals since December.
  • The bank saw revenue fall 13% in Q1 and net interest income—which has been a boon for banks as interest rates continue to rise—drop 19%.
  • Lower-than-expected operating costs allowed the bank to beat net income estimates, though the number was still down 33% to $269 million.

As of Tuesday morning, the bank’s stock price was down 29%, triggering a slide in some other regional banks’ shares, like PacWest.

Running out of options: First Republic is taking major steps to stay alive, and says it’s considering all options for its future. Many industry analysts expect the bank’s struggles will continue through the end of the year, and that it may never fully recover.

  • The bank plans to cut 20% to 25% of its staff, reduce its corporate office space, and nix nonessential projects.
  • It will significantly cut executive pay, and has suspended its common dividend.
  • First Republic will also restructure its loan portfolio by lowering outstanding balances and only originating loans that can be sold in the secondary market. It also said uninsured deposits will make up a smaller portion of total deposits.
  • At Monday’s earnings conference, bank executives said they are evaluating all strategic options for the future. Previously, the bank said it was considering a complete sale, but the magnitude of the bank’s unrealized losses makes it less than palatable for most buyers.

The big takeaway: Despite First Republic’s dismal state, other US regional banks’ Q1 earnings reports indicate that last month’s crisis is mostly behind them. Their deposits appear to have stabilized; some even reported deposit growth. But economic uncertainty and the threat of a recession mean regional banks aren’t totally in the clear. Deteriorating credit conditions could squeeze profits, and banks’ exposure to commercial real estate could spell trouble as the work-from-home trend continues to prevail in post-pandemic life.

This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.